Alpha and Beta are divisions within the same company. The managers of both divisions are evaluated based on their own divisions return on investment (ROI). Assume the following information relative to the two divisions:

	Case
	1	2	3	4
Alpha Division:
Capacity in units	52,000	296,000	109,000	208,000
Number of units now being sold to outside customers	52,000	296,000	85,000	208,000
Selling price per unit to outside customers	$98	$38	$64	$44
Variable costs per unit	$61	$16	$37	$28
Fixed costs per unit (based on capacity)	$25	$6	$22	$6
Beta Division:
Number of units needed annually	10,300	68,000	20,000	56,000
Purchase price now being paid to an outside supplier	$91	$35	$64*

* Before any purchase discount.

Managers are free to decide if they will participate in any internal transfers. All transfer prices are negotiated.

1. Assume that Alpha Division offers to sell 68,000 units to Beta Division for $34 per unit and that Beta Division refuses this price. What will be the loss in potential profits for the company as a whole?

2. What is the range of transfer price the manager's of both divisions should agree? (Round your answers to 2 decimal places.)